Survey Says Printing in Recovery
Manufacturing activity report says printing grew in August, though industry economist expresses doubts.
by Rebecca VanderMeulen, Contributing Editor -- Graphic Arts Online, September 8, 2009
A report on American manufacturing activity showed some growth in the printing industry in August. The Institute for Supply Management
released a report that indicated printing and related support activities grew in August compared to July. Overall, 11 of the 18 sectors it measures experienced growth in the period. Printing placed fifth in terms of sector growth; the paper products category showed the third-highest rate of growth. ISM does not disclose specific growth numbers for categories measured.
The report says manufacturing picked up in August after 18 months of contraction.
Last month the composite index used to create the report – based on five indicators including inventory and new orders – registered 52.9%. Anything above 50% shows an expansion in manufacturing.
“Overall, it basically means that the decline in manufacturing is over,” says Norbert Ore, chairman of the ISM manufacturing business survey committee.
The ISM defines sectors the same way as the U.S. Census Bureau. Under that definition, printing and related support activities refers to 14 industries including prepress services, commercial lithographic printing and digital printing. The paper products category refers to 27 industries including pulp mills, envelope manufacturing and paper bag manufacturing.
The report’s data come from purchasing and supply executives around the country. Terri Tracey, ISM’s VP for technology and publications, said that between 300 and 400 executives are surveyed, but wouldn’t say how many of them are in the printing sector.
Ore says printing and its related industries are usually among the first to show recovery after a recession.
But Ed Gleeson, manager of economic and market research for Printing Industries of America, says he usually sees the opposite. The sector usually declines two or three quarters after the rest of the economy and takes longer to catch up during a recovery, he says.
A July report by PIA showed a 4.75% decline in sales in the first half of 2009. That report was based on survey results from 253 companies, 58% of them general commercial printers.
“I really don’t see a growth in the industry this year,” says Gleeson, who hadn’t seen the ISM report.
Even though the two groups have different conclusions, Ore says that doesn’t mean either is wrong.
“I’m sure that we’re looking at two different sets of data,” Ore says. “The way our data is reported emphasizes month-over-month change.”
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